Developers across the United States are set to enhance the nation’s energy infrastructure significantly by adding 18.7 gigawatts (GW) of combined-cycle gas turbine (CCGT) capacity by 2028. Such a move comes in direct response to a projected electricity consumption boom. The increasing demand from data centers is the largest contributor to this increase. According to the US Energy Information Administration (EIA), this expansion will be essential as more intermittent resources are added to the grid. It will allow us to address growing energy demand for the future.
The EIA’s preliminary monthly electric generator inventory report casts an exciting light on that trend. The US is about to experience a dramatic increase in CCGT capacity! Electricity use is on course to reach all-time highs in 2025 and 2026. In turn, developers must build foundations of new and flexible energy supply to accommodate this tidal wave of demand. New CCGTs are the only option that can help achieve this goal while replacing our retiring coal fleet.
Importance of Combined-Cycle Gas Turbines
Combined-cycle gas turbines greatly enhance efficiency and flexibility of the energy supply. They remain hugely important to America’s energy mix. These combined-cycle systems use both gas and steam turbines to produce electricity, making efficient use of energy that would otherwise be wasted. Their capacity to rapidly deploy in response to short-term shifts in electricity demand only adds to their critical role in maintaining grid reliability.
At present, CCGTs are primed to add 18.7GW of capacity. This historic increase will better position us to stabilize the grid in a big way. The expansion includes 3GW of new CCGT capacity which is already under construction. 1.6GW is already scheduled to be finished in 2025 only. This proactive approach will help prevent potential electricity shortages with the anticipation of growing demand expected in the coming years.
Future Projections and Developments
The EIA has identified 2028 as a key year for CCGT growth. In fact, they predict it will experience the biggest single-year increase since 2018, with a whopping 10.6GW coming online. This historic increase couldn’t come at a more important time as the energy sector adjusts to the new reality of how we consume electricity. It’s crucial that developers continue to show strong momentum. They already have more than half of the 3.3GW capacity they plan under construction, expecting it to be commissioned by 2026.
As of 2024, just one new CCGT unit has been commissioned. It is located at the Plaquemines liquefied natural gas export terminal and adds only 98 megawatts (MW) to the grid. This small increase adds to the imperative need for much broader expansions as electricity use is expected to increase substantially.
Lifespan and Maintenance of CCGTs
A combined cycle gas turbine has a lifespan of about 25-30 years. This lifespan can be significantly increased by consistently upgrading, repairing, and maintaining its components. Such measures are crucial even as developers continue to expand capacity, not only bringing new units online but helping keep current ones healthy and efficient.
As CCGTs continue to evolve and adapt to changing energy demands, their role in supporting the US electricity grid becomes increasingly vital. The near-term expansions prove our commitment to solving today’s needs. Beyond that, they demonstrate our commitment to addressing the industry’s long-range challenges of the energy transition.